A 2026 survey by Biocatch of 100 banks locally indicates that South African banks are facing an increase in fraud-related crimes.
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South African banks are facing a sharp rise in fraud-related crimes as criminals become more sophisticated and exploit the rapid growth of digital banking and instant payment systems.
This is according to a 2026 survey of 100 fraud and financial crime leaders at banks across South Africa by BioCatch, which found that 75% of respondents reported increasing fraud attempts at their institutions.
The survey paints a picture of an increasingly complex fraud environment driven by faster payments, artificial intelligence tools, data leaks, and organised criminal syndicates operating across borders and digital platforms.
According to the report, criminals are increasingly impersonating banks, government agencies and trusted brands to manipulate consumers into authorising fraudulent payments. Banks are also facing mounting pressure from account takeover fraud, identity theft, SIM-swap attacks and mule-account activity.
The rise of instant payment platforms such as PayShap is adding to the challenge by reducing the time banks have to identify and stop suspicious transactions before funds are transferred.
“Readily available AI tools, data leaks, and more targeted social engineering campaigns are rapidly increasing the scale, speed, and personalisation of attacks,” reads the report.
“Reports of express kidnappings, where criminals abduct consumers and force them to empty their bank accounts, continue to grow.”
The report indicated that the South African Reserve Bank, the Payments Association of South Africa, and other industry bodies continue to push for stronger fraud controls, more secure digital payments, improved customer authentication, and greater collaboration to disrupt financial crime networks.
“Regulators expect banks to modernise legacy systems, strengthen fraud prevention without adding unnecessary friction, and respond more quickly to emerging threats in an always-on payments environment.”
The report added that South African banking leaders depict a fraud landscape where both the volume and the success rate of attacks now outpace existing defences.
“South African respondents were more likely than their counterparts at financial institutions elsewhere in the world to report rising fraud attempts, rising fraud losses, and annual fraud losses exceeding $5 million (R82 million).”
The survey said that that perception was even more pronounced in the C-suite, where 81% of executives believe fraud attempts against their organisation are increasing, 84% report growing fraud losses, and 86% estimate their organisation’s annual fraud losses in excess of $5m.
“Despite providing some of the most unanimous confirmation of rising fraud attempts and losses of any geography we surveyed, South African banking leaders still expressed a high degree of confidence in their institutions’ fraud prevention capabilities, with 91% rating their controls as effective and 69% considering them highly effective, both well above the global averages (76% and 48%).”
The report noted that South African banks are performing relatively well operationally, with 34% of institutions fully investigating fraud cases within one day, outperforming the global average of 26%.
“Only 15% of those surveyed report false-positive rates above 60%, compared to 26% globally, suggesting a best-in-class calibration of detection systems,” it noted.
The report also noted an emphasis on further improvement, with 30% of respondents indicating their organisation is already upgrading its fraud controls, while 70% say their bank is actively exploring vendors and considering new solutions.
“South African respondents recognise instant payment platforms like PayShap as a significant source of fraud exposure.”
The report added that a combined 89% associate these rails with moderate to very high risk, including nearly one-third who classify the risk as very high.
“Those surveyed also recognise collaboration between banking teams as highly effective, with 89% reporting it’s at least moderately effective in securing and returning funds to scam victims, including 40% who say it’s very effective at doing so.”
The report said that detection capabilities further support this resilience.
“Mule activity in South Africa appears typically identified within a relatively short timeframe, with most cases detected within the first month and an average detection time of approximately three weeks.”
BUSINESS REPORT